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But Shell chief executive Ben van Beurden insisted that its £35billion takeover of FTSE 100 oil and gas explorer BG Group, approved last week by both companies’ shareholders, would help it emerge from the downturn in a healthier state as he hailed “the start of a new chapter”.

The combined group is shedding about 10,000 jobs, while Shell has scrapped multi-billion pound projects over the past year including in Abu Dhabi and Canada.

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Earnings dropped to $3.8billion from just over $19billion in 2014

It is also reducing investment and selling assets. Operating costs and capital investment fell by $12.5billion compared with 2014.

Shell’s full-year profits were dented by $6.8billion of one-off costs including writedowns relating to the declining value of its oil and gas assets.

We are making substantial changes in the company

Ben van Beurden, Shell chief executive

Its fourth quarter earnings more than halved from $4.2billion to $1.8billion. Van Beurden argued the BG deal would “rejuvenate” the company and boost shareholder returns.

He added: “We are making substantial changes in the company, reducing costs and capital investment, as we respond to lower oil prices.

Shell will take further impactful decisions to manage through the oil price downturn, should conditions warrant that.”

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Shell will take further impactful decisions to manage through the oil price downturn

Shell shares jumped as the company held its dividend at $1.88 per share and reiterated that it would be at least that amount in 2016.

Laith Khalaf, senior analyst at Hargreaves Lansdown, said: “The company is so far making good on its commitment to hold the dividend, but there is a high degree of scepticism in the market that Shell can continue to defy gravity for the remainder of the year.

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BG’s assets should give Shell more cash flow

“Lower spending, swingeing cuts and substantial disposals over the next five years should all support cash flow and put some sort of a cap on debt levels.

“Shell looks to be doing everything it can to protect the dividend and eventually should have rising cash flow from BG’s assets to help further.”